Analysis: How can Lenovo increase its competitiveness from the deal with IBM – from a strategic alliance perspective

According to Lenovo?s 2004/2005 Annual Report, Lenovo has of all time aspired to become a world-wide caller. However, it had encountered obstacles for its except expansion and development. Firstly, though Lenovo is the largest PC maker in mainland China with more than a crap of the tradeplace share, it does lesser business exterior the country. Secondly, the increasing fierce ambition from scrappy international rivals such(prenominal) as Dell and HP in the ult fewer grades in Chinese grocery store has put further pressures on Lenovo?s margins (Electronics News, 2005), forcing it to expand its mart base. Its process rate in 2003 lagged behind the market development rate. Thirdly, the company also suffered pecuniary problems, earlier in the yr 2004, Lenovo confessed that its performance over the past three years had run low fiddling of internal targets (Burt J.,2005). Fourthly, shares of the company dropped nearly 60 per centime in 2004. Therefore Lenovo sees the desperate need to refine its market strategy in golf club to maintain growth. On April 30th, 2005, Lenovo effected the landmark acquisition with IBM?s PC section, hoping that it fuel embrace its try outed brand have-to doe with to foster global expansion, anchor credibility in foreign markets in a presently time and to establish its suffer brand. However, an interesting stratum to emit of is that if IBM?s PC Division is so powerful, then why would IBM like to withdraw from this domain of business and transform into a service company kinda?

IBMs PC business complete missed $258 million in 2003 and $139 million in 2004. In less than four years, IBM lost nearly a jillion dollars marketing PC (Musthaler, L., 2005). In this article, I would study how Lenovo can conform to in the field where IBM failed. The marketing management progeny in the buying out would be discussed in toll of what Lenovo should do to... Good article. However, it has not yet answered the header on what is Lenovos point of differentiation? Innovation? Efficiency? or both? or something else?If you compliments to get a respectable essay, order it on our website: Ordercustompaper.com

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